As we reach the end of 2021 I thought it appropriate to provide an update of where the market lies.
A much-improved market:
The Sotogrande real estate market has more than recovered from the pandemic and is producing a significant increase in the number of transactions and volume. Clearly, the continuance of this trend will depend on lockdowns across different countries, vaccination rates, particularly boosters, and the impact on global macroeconomics of the cost of Covid in the form of financial assistance and tax reliefs.
Shortage of properties:
The highly sought-after Kings and Queens area is short of inventory. This phenomenon is also beginning to be reflected in other parts of the urbanisation, particularly the popular B Zone and F Zones. New builds in Sotogrande are slowly selling out with only a few units remaining in La Finca, Senda Chica, and the 1st phase of Village Verde.
Sotogrande SA:
Having now sold out all the Mirador, the focus is on Village Verde, the 15, the 7 and the Beach plots. Sotogrande SA marketing strategy and heavy spending have yielded good results. Selling Sotogrande as a district of Marbella has highlighted the resort to a market otherwise blind to Sotogrande. The refurbished hotel property Sotogrande SA own (previously the Almenara Hotel) has been leased to the Accor Group and we now have a genuine 5-star hotel in Sotogrande branded SO/Sotogrande.
Buyer profile:
Generally, buyers are less hesitant, choosing property faster. Today’s brief requires more space, fibre optic internet connection, a study or office. We have seen a significant shift away from the traditional British and Irish buyers towards Western European nationalities.
Remote worker options:
Sotogrande offers climate, lifestyle, vast accessibility via Malaga, Gibraltar Sevilla and Jerez airports, a world-class education with the Sotogrande International Schools, and an extremely competitive € price per m2 compared to Marbella. All this is making Sotogrande a preferred destination.
Continuance of the purchase tax reduction:
The Andalusian government decided to extend the reduction of transfer taxes for resale property purchases in Andalucía from 8-10% to a flat rate of 7% for resale property purchases indefinitely. For new build properties, stamp duty was reduced from 1.5% to 1.2%. Good news for the industry and buyers.
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